SMART DESIGN managing assets As a private sector company we are - PowerPoint PPT Presentation

Adrian Hardwick-Jones Vice President of Design and Technical Services • My Background: o Architect with a MBA o Experience in management assets across Asia o Hotels, Retail, Offices and Residential SMART DESIGN – managing assets

As a private sector company – we are commercial driven • My role at Centara is quite simply: manage property assets to drive revenue and reduce costs. • This entails – Review and improve all existing assets (owned or managed) – Build new assets with our own investment funds – Help owners of build better assets under management contracts. • Asset management – life cycle & energy management

Asset Management Chasing the dollar 4

Recovering lost profits by improving water management

Centara Water Consumption 2015 January 2015 - December 2015 Activity Total (ML) Per Activity (L/Guest Night) Operations Answer 179,408 183.20 1021 Centara Grand Beach Resort & Villas Krabi 172,107 141.29 821 Centara Grand Beach Resort and Villas Hua Hin 185,970 116.16 625 Centara Grand Beach Resort Samui 181,753 92.42 508 Centara Grand Island Resort and Spa Maldives 95,666 76.23 797 Centara Ras Fushi Resort and Spa Maldives 445,982 219.60 492 Centara Grand Mirage Beach Resort Pattaya 299,202 140.84 471 Centara Grand West Sands Resort and Villas 262,745 100.89 384 Centara Karon Resort Phuket 102,407 43.78 428 Centara Kata Resort Phuket 98,268 25.31 258 Centara Anda Dhevi Resort and Spa 538,977 240.40 446 Centara Grand at Central World 431,470 221.21 513 Centara Grand at Central Plaza Ladprao Bangkok 138,855 54.35 391 Centara Hatyai 224,063 175.60 784 Centara Grand Beach Resort Phuket 45,633 29.65 650 Centara Villas Phuket 57,432 50.28 875 Centara Villas Samui 591 Average litre per guest night (2014 = 636 L/GN) 6

What does this tell us? • Given the global average norm for hotel guest water consumption is 300L and household is 160L we have much to do. • Corporate strategy for water management is required. • Good water treatment requires focus at design • Poor water treatment is very expensive !

What do we need to do? The Basics: If you can’t measure it – you can’t : • control it • manage it • improve it The Solution: Business analytics, real time data, engineering software, with desktop reporting to manage water (and other energy resources)

Typical value chain in water usage: Pre- Distribution Purchase Storage treatment costs Recycling Usage Recycling/ distribution Storage (application) treatment costs Discharge PM and costs repair costs Costs are typically 20 – 30 % of all utility costs

Usage in hotels : There are many different applications in hotels. Depends on size, type (beach resort vs business), events, occupancy etc. • Guest rooms • Laundry • Swimming pool and recreation • Kitchen • Air conditioning • Water losses (leakages) In the past we acknowledge that little attention on intelligent water management during design and construction. Simply things such flow meters to measure usage areas were not part of the design 10

Consequences of poor water management: Most important: Safety and health protection against legionella (reputation, media exposure) Today as an “asset manager” I know: • Good water management saves costs • Good water treatment extends equipment life time • It is also improves our image and CSR 11

Solutions; 12

Water management requires know-how and expertise: Different application/usage – requires suppliers with specific application knowledge and expertise Water supply quality varies with geographical location, season and source (surface, underground, recycling) • Water treatment technologies is requires specialist knowledge. There are many different applications 13

Asset management and investments: Water management requires investment: • Flow meters at strategic locations to measure water usage in different areas • Manage flow and pressure to conserve energy • Water analysis meters to measure minerals, alkalinity, oxygen, pH, hardness etc • Water treatment equipment (dosing pumps, chemicals) • Online measurement and monitoring Agreed KPIs on above with third party suppliers 14

Centara is embarking on a major investment to overall our own assets • Energy and engineering Management systems first contract for 6 properties signed this week • Property Asset upgrade New MEP infrastructure, rooms renovations including fittings and fittings • New Assets strategy investment of building about 2 hotels per annum for next 10years Best Practice in asset management including management of natural resources are at the cornerstone of these investments 15

What have undertaken on property 16

Best Practice of Water Saving 17

Potable Water cost in Phuket; NO. Source Cost per M3(THB) 1. City Water 25-37 2. Water Truck 70-80 Deep well Water 3. 5-10 (included treating cost) 4. Drinking Water 7-12

Potable Water Consumption 2014 VS 2015 2014 2015 Saving in THB compare from 2014

Potable Water Consumption 2015 20

Potable Water Consumption 2015 compare to the competitors Better than Best Practice

Achievement Environmental Certified Programme 1. EarthCheck 2. Kuoni Water Champion

Fresh Water Resource Management 1. KPI 2016 is 15% reduction of water consumption per guest night 2. Install water saver for faucet of washbasin at guest room, public bath room and staff locker. 3. Install water meter for main riser pipe, swimming pool, cooling tower, deep well pump, main kitchen and laundry. 4. Install water level control and monitor. 5. Reused rain water system and rain water storage tanks. 6. Change the new cooling tower system to saving water (50%) type (ROI 2 years) 6.Select to grow the type of plant with low water demand 7. Monitor the reuse water consumption

Example of poor water quality of condenser water system in air conditioning system .Pictures @ cooling tower. Reduce life time of cooling tower and increase energy usage in chiller and pumps

Additional chemical cleaning treatment is necessary due to poor water quality

Result after cleaning !! The point is – if a proper water quality management system was in place no additional cleaning is required

What we can do now! 2016 • Set 15% KPI target of water reduction for all 34 Centara Properties • Future plan for water saving and innovations 27

Communication for water-saving participation - Reuse towel and linen card - Water Saving Tips in house channel, public area poster, CHR website

Green Team/ Water saving team • Communicate the management’s commitment to water reduction and the subsequent objectives and goals to all employees. • Encourage staff to put forward their own suggestions for water reduction, motivate through feedback and reward success.

Activity - Mangrove planting - Check dam in Phuket forest

Reduce the water usage of toilet flush tank by 1. Adjust the level floating ball which could reduce water 1.50 litres / time 2. Provide the full bottle of water(size 1.25 litre also depends on the size of the tank) this can reduce water consumption 1.25 litres / time Suggest to take off the label of bottles to avoid any misunderstanding Cr. CGLB

Saving Result is 2.75 litres per 1 flush 10 times flushing can save 27.5 litres Question: How many rooms do you have? Cr. CGLB

Install low flow regulators/ aerators Cost is 100-200 baht per piece but saving result is amazing Cr. CGLB

Install low flow regulator on the hand shower Cr. CGLB

Saving Result is 11.40 litres per minute Cr. CGLB

Install Low Flow Regulator on the Faucets/ taps Cr. CGLB

Saving Result is 13.20 litres per minute Cr. CGLB

Install Low Flow Regulator on the Rain Shower Cr. CGLB

Saving Result is 6 litres per minute Cr. CGLB

Checking Water Meter Daily - To address water leaking promptly especially in kitchen, laundry, spa, and swimming pool. - Able to compare water consumption on Benchmarking to plan for where the major water costs are and where savings can be made Did you know in Maldives properties, Engineer teams check the water meter every hour? Cr. CGLB, CRF, CIRM

Replace the old pipe to the durable pipe i.e. PPR - This can save water leaking from broken pipe in long term. - Durable to the sun and shockproof - Proper composited function Cr. CGLB

Laundry • Set the plan of laundry operation before running the washer machine. • Preventive Maintenance of all Washing Machine and Ozone washing Machine monthly. Cr. CGLB

Reused water condensation from room air- condition to cooling tower. - Install Drain Pipe of Ice making machines room to cooling tower to reuse water defrost from ice to refill in cooling tower system(save water 850 liters per day). - Install Drain Pipe of Air condition (AHU) to cooling tower to reuse condensation water from air condition to fill in cooling tower system(save 500 liters per day). Cr. CHY and CGLB

Reused waste water treatment for the landscape Did you know CHBR can save more than 1.8 million baht per year by using recycled waste water for the landscape? Cr. CHBR, CRF, CSBR, CPBR, CKR, CKT, CVP, CMS,etc